RBA 'won't budge' on rates til May

The Reserve Bank of Australia’s (RBA’s) interest rate cutting bonanza has come to an end, experts have decided.

According to the Herald Sun, economists are betting that the RBA will hold back on further interest rate cuts until May at the earliest, despite omens of additional money misery for many thousands of Aussies.

Earlier this week, the RBA itself warned that the first-home buyers grant could contribute to a surge in house prices that is likely to put hard-up Australians under the cosh.

Meanwhile, unemployment is set to surge to seven per cent by the middle of next year, putting pressure on people’s ability to pay off their home loans, credit card debts and household bills.

Recognising these dangers, Margy Osmond, the chief executive of the Australian National Retailers Association, called on the RBA to cut interest rates by another 50 points when it meets next week in a bid to ease the pressure of home loan payments.

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